10 reasons why you should get a Financial Adviser

18 November 2020

It’s often said that financial advisers are only suitable for the very rich, but financial advice is something that everyone can (and should) benefit from. Financial advice can help you protect and build your assets, assist you in optimising your investments, and also secure both your long term future and that of your family. If you still need a little more convincing then here’s our own pick of 10 reasons why consulting the experts is a worthwhile investment.

1. You’re getting married

For couples who are getting married, meeting with a financial professional is considered an increasingly vital step. It’s not very romantic but working out the nitty gritty details – of who’s going to pay the bills and whether the couple will pool their money or maintain separate accounts - is a must for any married couple. It is particularly important if one or both parties have accumulated significant assets prior to getting married or if you’re getting married later in life. Navigating through the changes won’t be easy, but careful planning will help married couples build a strong financial foundation to their relationship.

2. You’re looking to invest in your child’s future

When it comes to planning for a child’s future, parents have various issues to face; including when to start, what to save for and how much to invest. Parents however have one clear advantage on their side: time. Putting money aside for a child little and often can build up into a substantial nest egg over the years. A financial adviser can guide parents to make the right investment choice for them and plan effectively for each of their children – from funding their education and higher education, to helping them buy their first home.

3. You want to achieve financial stability

If you don’t save, then you’re not financially stable. Life can be unpredictable and it’s important therefore to build assets that can act as a safety net for whatever life throws at you. Building savings is a lifelong commitment and when it comes to managing money, many people find that it pays to hire a financial adviser. Working with an adviser can help you create realistic financial goals and implement a plan that will enable you to achieve financial stability over the long term.

4. You’re planning for retirement

These days most people are aware that they cannot rely on the state alone to provide for a comfortable retirement. Planning for retirement is therefore one of the most sensible financial commitments you will ever make. A financial adviser can assist in navigating the tricky planning process and help you to construct a portfolio that optimises your long term prospects. There are a myriad of plans out there that could offer greater flexibility than a traditional pension and speaking to a financial adviser will help you make an informed decision.

5. You want an objective assessment

Working with a financial adviser can be a great way to build an objective assessment of your current finances. Not only this, a good adviser will be able to tell whether an investment opportunity is right for you. New opportunities are always accompanied by a certain amount of hype but your financial adviser should be able to point out the positives and negatives that are specific to your portfolio. Armed with this insight, you’ll be able to make informed decisions about when to invest and when to avoid.

6. You’re passing wealth on

Every person should make a will as soon as they’re able, but it’s especially important if you have people who depend on you – such as a partner or children. It is not required that you consult a financial adviser but there are many benefits. Not least of which is that a financial adviser can help you determine what happens to your assets whilst you’re still able to make that decision for yourself. A financial expert is also well placed to help you uncover investments that you might have overlooked; helping you to maximise the assets that will go to beneficiaries and offering insights on how to minimise taxes paid.

7. You’re coming into an inheritance

Receiving an inheritance can transform your financial situation, but it comes with the added pressure of how to make the most of it. The very first thing you should do if you receive a substantial inheritance is review your financial situation and create a new financial plan. Sitting down with a financial adviser will help you think before you spend, and with their help, you could build a suitable investment portfolio that will both help you make money and keep you from losing it.

8. You’re looking to buy a house

Buying a home can be challenging and it might be the biggest financial purchase you ever make. The decisions you make during this process can profoundly impact the rest of your life and it is therefore vital that you seek out professional advice. A financial adviser can prompt you to ask the right questions prior to buying a home and will guide you to select the right home for you. Furthermore, they will create an overall financial plan for you, to ensure you can realistically afford a property, and to advise you on how to manage payments should circumstances change.

9. You want to find the right combination of assets

Building an investment portfolio is about selecting the right combination of assets for you. A financial adviser can evaluate your risk appetite and then make recommendations based on your attitude to risk. Having a diverse portfolio is a cornerstone of traditional investment strategy and it ensures you are balancing risk by not placing all of your eggs in one basket. Depending on your needs, it might be worth diversifying across countries, industries and sizes; but you should speak to a financial adviser to find the level of diversity that best protects your portfolio for the long haul.

10. You want to avoid making costly mistakes during times of volatility

This year every investor has likely fretted over the impact of COVID-19 on the stock markets. If you don’t listen to the experts however, your emotions might over rule your logic and cause you to make silly mistakes – such as withdrawing your money and hiding it under the mattress. A good financial adviser knows that dips in the market are part and parcel, and they’ll encourage you to leave your investments alone - and maybe even to invest a little more while stock prices are low. Likewise, when a new investment fad emerges, a financial adviser will likely counsel you to keep a balanced portfolio and not to gamble with your long-term prospects.